If you are new to investing, you might think that the easiest way to get involved is through the stock market. While that is often a great introduction, it is not necessarily the best way to see steady returns on your investment. What is the best way? The answer might be surprising: Real estate.
96% of people that invested in real estate credit it as the reason that they achieved financial success, according to a survey by Better Homes and Gardens Real Estate. But while real estate is a very popular option for investment, that does not mean there aren’t pitfalls.
In this guide, we will teach you how to avoid those pitfalls and invest in real estate like a professional.
- Anticipate Growth
The single most important factor to succeed in investing in real estate is to try to anticipate where a neighborhood will grow. In fact, many real estate investment advisors will steer their clients to areas where a major expansion is projected but not year started. That can mean at the site of a major development or along a projected public transportation root. This method allows you to get in at the ground floor while prices are cheap, meaning more profit down the line.
- Consider Student Housing
Student housing is a great possibility when looking at real estate investments. That is because these types of real estate are recession proof — or unaffected by massive shifts in the market. That is because people flock to education when the markets go bad. Additionally, student housing investment opportunities have a built in clientele, so long as they stay competitive.
- Look For Turnkey Opportunities
Turnkey real estate is a piece of property that is not only renovated but also being rented. This form of real estate investment is perfect for many because they come with a guaranteed and immediate cash flow from the current tenants of the apartment. While these opportunities might be more expensive, they allow you the peace of mind that you will be able to re-coop a portion of your investment.
While it might not be as glamorous or exciting as investing in the stock market may be, real estate is one of the most practical and reliable forms of investment available. With these tips, you can rest assured that you will be on the right track.